First Foundation (US:FFWM)2026-01-29 11:55Financial Performance - First Foundation Inc. reported a net loss of $8.0 million for Q4 2025, translating to a loss per share of $0.10[3] - Noninterest income for Q4 2025 was $8.9 million, a decrease from $17.5 million in the prior quarter, largely due to a loss on capital market activities[7] - The net loss for the quarter was $8.0 million, which contributed to the decrease in shareholders' equity[39] - The net loss for Q4 2025 was $8,040,000, compared to a net loss of $14,111,000 in Q4 2024[50] - Adjusted net income attributable to common shareholders for the quarter ended December 31, 2025, was $(3,470), compared to $(149,949) for the year ended December 31, 2024[62] - Adjusted net loss attributable to common shareholders for Q4 2025 was $(3,470,000), compared to $(13,873,000) in Q4 2024[69] Income and Expenses - Total net interest income decreased to $39.4 million in Q4 2025, down from $46.1 million in Q3 2025, primarily due to $6.1 million in hedging costs[5] - Noninterest expense was $62.9 million in the quarter, compared to $57.5 million in the prior quarter, with an increase in professional services and marketing costs attributed to one-time merger-related activity[30] - Total noninterest expense for Q4 2025 was $62,888,000, an increase from $57,482,000 in Q3 2025[67] - Total revenue for Q4 2025 was $48,358,000, down from $63,597,000 in Q3 2025[67] Asset and Liability Management - Total assets amounted to $11.9 billion as of December 31, 2025, slightly down from $11.91 billion as of September 30, 2025[48] - Total liabilities were $10.99 billion as of December 31, 2025, compared to $10.99 billion as of September 30, 2025[48] - Loans held for investment decreased to $6.73 billion as of December 31, 2025, from $7.30 billion as of September 30, 2025[48] - Total loans outstanding as of December 31, 2025, were $6,722,256, a decrease of 7.85% from $7,296,895 on September 30, 2025[54] Capital and Equity - Total risk-based capital ratio increased to 15.51% at year-end 2025, reflecting improved capital strength[5] - Shareholders' equity totaled $912.6 million as of December 31, 2025, down from $917.9 million as of September 30, 2025, and $1,053.4 million as of December 31, 2024[39] - The common equity tier 1 risk-based capital ratio was 10.84% as of December 31, 2025, up from 10.21% in the prior quarter[38] - Tangible common equity as of December 31, 2025 was $823,390,000, a decrease from $962,156,000 year-over-year[69] Loan Performance - The loan-to-deposit ratio improved to 75.3% as of December 31, 2025, compared to 83.6% at the end of Q3 2025[7] - The loan portfolio average yield was 4.70%, a decrease of 2 basis points from 4.72% in the prior quarter, while average yields on new loan fundings were 6.65% compared to 7.00% in the prior quarter[14] - Total loans, including loans held for sale (LHFS), decreased to $7,524,927 for the quarter ended December 31, 2025, down 23.0% from $9,770,057 for the year ended December 31, 2024[56] Nonperforming Assets - Total nonperforming assets were $43.9 million as of December 31, 2025, compared to $39.7 million in the prior quarter, with a ratio of nonperforming assets to total assets at 0.37%[35] - Nonperforming assets totaled $43,884,000 in Q4 2025, compared to $39,717,000 in Q3 2025 and $46,654,000 in Q4 2024[51] Market and Recognition - First Foundation Advisors was recognized as a top registered advisory firm by Barron's in 2024, highlighting its growth and client retention[8] - The company is in the process of a merger with FirstSun Capital Bancorp, which is expected to enhance future financial performance[42]